TT sees Foreign Tax I paid but leaves value at zero.

[mark-crosland]

Hi,

I have TurboTax Premier 2021. TT sees that I paid foreign tax on dividend income. I select to 'credit' option for foreign taxes. When I go to the section on Foreign Tax credit, TT asks me for the amount of income I received from each country (one for me, Canada). I enter the income amounts. When TT takes me back to the screen 'Your 202 Deductions & Credits' the foreign tax is still zero. But there is tax paid on the 1099's and TT claims to have seen it.

Any ideas?

Thanks,

Mark

[DaveF1006]

It depends. You may not be able to take advantage of the foreign tax credit this year and  thus the amount of foreign tax paid may be a carry over. 

Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources.

Whatever is not claimed this year, you may have a foreign tax carryover, which means You can carry back for one year and then carry forward for 10 years the unused foreign tax.

[rifi]

I’ve read several replies, on TT this season, from “Tax Expert(s)” and “Employee Tax Expert(s)”. Covering various topics.

This one, by @DaveF1006 , was one of the best.